Financial institutions, including banks and insurance firms, recorded an 8.5 per cent growth in real Gross Domestic Product (GDP), contributing N1.93 trillion in the first quarter of 2026, compared to N1.78 trillion posted in the corresponding period of 2025.
This was revealed in the latest Q1 2026 GDP report released by the National Bureau of Statistics (NBS).
According to the report, the financial institutions sub-sector remained the largest contributor within the Finance and Insurance sector, accounting for N1.75 trillion in Q1 2026, up from N1.61 trillion in Q1 2025. The growth of about 8.4 per cent reflects sustained expansion in banking operations, credit financing, and other financial intermediation activities.
The insurance sub-sector also maintained positive growth momentum, rising to N180.95 billion during the quarter from N164.58 billion recorded a year earlier. This represents an increase of approximately 9.9 per cent, driven by improved premium generation, stronger underwriting activities, and increased market penetration.
The NBS noted that the Finance and Insurance sector consists of two major components — Financial Institutions and Insurance. Financial institutions accounted for 90.62 per cent of the sector in real terms, while insurance contributed 9.38 per cent in Q1 2026.
The report further stated that the sector grew by 46.91 per cent in nominal terms on a year-on-year basis. Financial institutions recorded 46.71 per cent growth, while the insurance segment posted a higher growth rate of 48.80 per cent.
According to the bureau, the overall nominal growth rate was 25.89 percentage points higher than the level recorded in Q1 2025 and 20.33 percentage points above the preceding quarter.
Quarter-on-quarter, the sector expanded by 18.86 per cent in nominal terms. Its contribution to nominal GDP stood at 3.83 per cent in Q1 2026, higher than the 3.07 per cent recorded in the same period last year and above the 2.91 per cent posted in the previous quarter.
In real terms, the Finance and Insurance sector recorded an 8.54 per cent growth rate, though this was 6.49 percentage points lower than the figure reported in Q1 2025. However, it was slightly higher by 0.24 percentage points compared to the preceding quarter.
On a quarter-on-quarter basis, real growth stood at 17.77 per cent, while the sector’s contribution to real GDP increased to 3.76 per cent, compared to 3.60 per cent in Q1 2025 and 2.56 per cent in Q4 2025.
Meanwhile, Nigeria’s overall GDP growth slowed to 3.8 per cent in the first quarter of 2026, highlighting ongoing economic pressures despite the strong performance recorded in the banking and insurance industries.
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